Rethinking Customer Success in 2024

Hello Fellow Customer Success Pros,

Wow was 2023 a whirlwind. Customer Success was taken for a ride, but as we wrap up the year and start thinking of a new fresh start for 2024, what is it you should be focusing on?

The landscape of Customer Success is evolving rapidly, and it's time to adapt and thrive in this new era. As we step into 2024, I invite you to embrace the future and really start to revolutionize how you value customer success.

For the past past few years many companies and investors viewed customer success as a feel-good function, a department that makes “customers happy”, but the ever changing macroeconomics of the world has lead to budget cuts and the economic downturn has exposed the truth: happy customers do not justify CS budgets.

2023 started to reveal who really understands the concrete impact of customer success. The leaders doubling down have aligned CS around clear performance indicators with measurable revenue targets, but how do you do this?

As you plan for 2024, the three best places to focus on when rethinking customer success would be to focus on the following:

• Increased customer retention and expansion

• Higher lifetime value

• Shorter time-to-value and faster adoption

2024 brings an inflection point. CEOs and CS leaders can no longer afford vague definitions of customer success tied to fuzzy emotions like satisfaction or happiness. To step up as strategic revenue partners, CS teams must realign around customer and company health, not superficial surveys. They must speak the language of revenue expansion, ROI, reduced churn and greater wallet share. Get comfortable with speaking about revenue, profit and loss, and how your CS teams are contributing to the bottom line in business.

2024 calls Customer Success leaders to actively showcase CS’ financial impact. With clear KPIs, robust analytics and a customer-first mindset focused on agreed outcomes, they can earn a valued seat at the executive table.

Don’t fall behind as we ring in the new year. The last 18 months of economic change exposed the reality that we need to focus on.

Embracing Proactive Customer Engagement

Being proactive is the name of the game. Instead of waiting for issues to arise, consider adopting a proactive approach to customer engagement. By anticipating needs and addressing concerns before they escalate, you not only enhance customer satisfaction but also build lasting relationships. We life in a fight or flight world, a lot of customer success is reactive and will continue to be, but the only way to get ahead of the curve is to ensure that you build out a proactive customer engagement strategy. Be both a proactive and reactive CSM.

How do you do this?

• Implement proactive outreach through personalized communications, offering guidance, tips, and best practices to help customers derive maximum value from your products or services.

• Utilize technology, such as AI-powered chatbots, to provide real-time support and address customer questions instantly.

Conduct Regular Business Reviews

Conducting regular business reviews is crucial for customer success pros seeking to build long-term relationships and drive sustained revenue growth. QBRs or EBRs are always a taboo topic, but you are not just a CSM, you are a business strategist and you need to provide a comprehensive review to your customer as to the value they are getting from your software. These sessions provide a structured way to collaborative with your customer's evolving needs, challenges, and objectives. Through discussions, you gain a deeper understanding of their journey with your product. Regular business reviews also offer an opportunity to showcase the value your product bring to their business. Additionally, these sessions facilitate open communication, allowing you to proactively address concerns, showcase new features, and explore opportunities for upselling or cross-selling.

How do you do this?

• High Touch: Schedule personalized high-touch business reviews, involving key stakeholders, to collaboratively assess the customer's evolving needs, align on goals, and showcase value.

• Low Touch: Implement automated and scalable business review processes, leveraging analytics and customer data, to conduct streamlined assessments, or possible create a one to many webinar, or video QBR.

Building a Community of Advocates

Your customers can be your most powerful advocates. They are the key to your future sustainable revenue growth. Foster a sense of community among your customers. Encourage feedback, celebrate success stories, and provide platforms for customers to connect with each other. A strong community not only enhances customer satisfaction but also serves as a powerful marketing tool to attract new customers and thus contributing to your company’s revenue.

How do you do this?

• Identify and nurture satisfied customers who can serve as advocates for your brand. These advocates can play a crucial role in influencing potential customers and driving expansion.

• Establish a structured customer advocacy program that incentivizes customers to refer new business, provide testimonials, or participate in case studies.

As we navigate the evolving landscape of customer success in 2024, embracing these strategies can set your business on a path to sustained revenue growth. By proactively engaging customers, leveraging data for personalization, embracing technology, and building a community of advocates, you'll be well-positioned for success in the years ahead.

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